A. For each item, indicate whether it is an Asset, a Liability, or Capital in Column A. Then, if the item is an asset or a liability, indicate if it is Current or Non-current in Column B. If the item is capital, place N/A in Column B.
| A | B | |
|---|---|---|
| 1. Tools and equipment | Asset | Non-current |
| 2. Salaries payable | ||
| 3. Additional investment of owner | ||
| 4. Cash on hand | ||
| 5. Cash deposited in Prime Bank | ||
| 6. Delivery truck | ||
| 7. Obligation to pay supplier | ||
| 8. Loan from bank, 5 years | ||
| 9. Investment in long-term bonds | ||
| 10. Prepaid insurance | ||
| 11. Patent (an intangible) | ||
| 12. Withdrawals made by owner | ||
| 13. Merchandise for sale | ||
| 14. Building used as office space | ||
| 15. Accounts receivable |
B. For each item, indicate whether it is an Income or an Expense. If it is neither income nor expense, write its proper classification.
| 1. Rent revenue | Income |
|---|---|
| 2. Rent payable | |
| 3. Salaries of employees | |
| 4. Sales | |
| 5. Light, water, and electricity | |
| 6. Loss from flood | |
| 7. Accumulated depreciation | |
| 8. Prepaid advertising | |
| 9. Delivery costs | |
| 10. Gain on sale of land |
C. For each of the following accounts, indicate whether it is an Asset, Liability, Income, or Expense. If it is an asset or a liability, specify whether it is current or non-current.
| 1. Merchandise Inventory | Asset | Current |
|---|---|---|
| 2. Accounts Payable | ||
| 3. Utilities Expense | ||
| 4. Service Revenue | ||
| 5. Computer Equipment | ||
| 6. Office Supplies | ||
| 7. Bonds Payable | ||
| 8. Land | ||
| 9. Cash | ||
| 10. Furniture and Fixtures |
For the exercises below, write your answers on a piece of paper. When you're done, check the answers page at the end to see if you got them correctly.
